New $550k penalties target rogue tradies across South Australia

New 0k penalties target rogue tradies across South Australia

South Australians are being urged to take a closer look before hiring a tradie, as the State Government cracks down on rogue operators with tougher penalties now in force.

The warning follows a spike in complaints over the past 12 months, with Consumer and Business Services urging households to check licences, compare quotes, and watch for red flags before handing over money for building or trade work.

Under the new rules, repeat offences can now attract penalties of up to $150,000 for individuals and $550,000 for companies, while several new offences for unlicensed work are now subject to $5000 on-the-spot fines.

Those offences include hiring unlicensed subcontractors to undertake licensed work, using another contractor’s licence number, and falsely claiming to be licensed or registered.

Minister for Consumer and Business Affairs Michael Brown said the changes were designed to better protect South Australians from operators doing the wrong thing.

“It is very concerning to have received so many complaints from South Australians feeling ripped off by rogue tradies and we are cracking down with much harsher penalties,” Mr Brown said.

“Most builders and tradies do the right thing, however, there is no excuse for operating without a licence and performing substandard work and then leaving people in the lurch.”

CBS is advising anyone hiring a tradesperson to get advice from at least three different tradies before committing to work. This can help people understand the true scope of the job and spot whether someone is suggesting unnecessary or inflated work.

Consumers are also being urged to request itemised, fixed quotes and compare them carefully. While urgent jobs can make it tempting to accept the first available option, CBS says taking time to compare prices can save significant stress and money later.

Another key warning is to check who is actually behind a business. Some companies trade under multiple names, meaning consumers may think they are comparing three separate businesses when they could be dealing with the same operator or linked companies. CBS recommends noting the licence number and checking the licensing register to see which business names are connected to it.

By law, builders and tradespeople must display their licence number on advertising, including social media, websites and business cards. Consumers can check a licence by asking to see a digital licence, checking a plastic licence card, searching the CBS licensing register, or phoning CBS on 131 882.

Door-to-door traders are also being flagged as a major red flag, particularly where money is requested upfront. Under consumer law, door-to-door sales require a written contract and a 10-day cooling-off period.

CBS also recommends avoiding large upfront payments. For smaller jobs, payment is usually only required once the work is complete, while for bigger jobs, a maximum 10 per cent deposit is recommended.

“Always take the time to compare the quotes from different businesses and make sure everyone who provides a quote is licensed. If they are not, report them to CBS,” Mr Brown said.

More information about the new penalties is available here, https://cbs.sa.gov.au/campaigns/south-australias-building-and-construction-industry-changes

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